Fixed deposit is a low-risk, low-maintenance saving scheme which is free from market fluctuations. Therefore, it is an ideal saving scheme for senior citizens.

• Senior citizens can easily book the deposit with a minimum amount of Rs. 25,000 online by submitting basic paperwork.
• The deposit is rated high on safety and stability with ICRA’s MAAA (stable) rating and CRISIL’s FAAA/ stable rating, thus, your investments are never at risk.
• Earn income with higher interest rate starting from 8.40% onwards. While senior citizens can avail additional income of 0.35% on the base rate and 0.25% upon renewal of their deposit.
• You can save tax on interest income of up to Rs. 10,000 and depositors can submit Form 15G and Form 15H to the lender to save tax on the income of more than this amount.

For instance, if you book a fixed deposit of Rs. 50 lakhs under the senior citizen scheme you can earn approximately Rs. 25,12,512 at the time of maturity of the deposit.

This figure is obtained from the FD calculator available from the lender’s website. It uses the below formula to calculate the interest amount.

A = P (1 + r/4/100) ^ (4*n) and A = P (1 + r/25)4n.

Where A = Maturity Amount

P = Deposit Amount

n = Compounded Interest Frequency